Private Equity Minority Investments - Universität St.Gallen

Table of Contents2.2.1 Controlling Owner Family Perspective ......................... 642.2.2 Minority Investor Perspective ........................................ 652.3 Limitations ........................................................................... 663 Managerial Hegemony Theory ................................................... 673.1 Basic Concept ....................................................................... 673.1.1 Overview ........................................................................ 673.1.2 Underlying Assumptions and Key Messages ................ 673.1.3 Application of Theory .................................................... 683.2 Application of Theory to Closely Held Companies ............. 683.3 Limitations ........................................................................... 694 Conclusion .................................................................................. 70Part Two: Legal Framework and Tools ............................ 73III Introductory Considerations ................................... 74A The Portfolio Company’s Business Form: AG versusGmbH .............................................................................. 741 Overview .................................................................................... 742 Characteristics of the GmbH ...................................................... 76B Key Legal Documents ..................................................... 801 Articles of Association ............................................................... 801.1 Term ..................................................................................... 801.2 Enacting Body ...................................................................... 811.3 Legal Effect and Enforceability ........................................... 811.4 Content ................................................................................. 821.5 Limitations ........................................................................... 822 Organizational Regulations ........................................................ 832.1 Term ..................................................................................... 832.2 Enacting Body ...................................................................... 832.3 Legal Effect and Enforceability ........................................... 842.4 Content ................................................................................. 852.5 Limitations ........................................................................... 863 Contractual Agreements ............................................................. 873.1 Term ..................................................................................... 873.2 Purpose ................................................................................. 883.3 Content ................................................................................. 88IV Voice .......................................................................... 89A Concept ............................................................................ 891 De Jure and De Facto Voice ....................................................... 89XIII